Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial has positioned itself as a significant player in the U.S. financial services landscape, with approximately 65% of its operating income derived from its advice and wealth management segment, which exceeded $1 trillion in assets under management by the end of 2024. The firm's asset management segment, Columbia Threadneedle, also contributes substantially, holding $645 billion in assets, indicating a strong capacity for generating revenue and operating leverage amid increasing advisor productivity and client engagement initiatives. Additionally, Ameriprise demonstrates a robust capital return strategy, returning nearly 80% of operating earnings to shareholders, which, coupled with a solid excess capital position, enhances its attractiveness as an investment opportunity.

Ameriprise Financial's financial outlook is challenged by a 5% quarter-over-quarter decline in total brokerage cash balances to $37.97 billion, falling short of expectations. Additionally, the firm's net pre-tax adjusted operating margin decreased to 39.0%, which is lower than the projected 39.9%, alongside general and administrative expenses exceeding estimates. Compounding these concerns, there is an anticipated 10% decline in assets under management due to broader market conditions, which could adversely affect overall performance.